Markets
Insomnia Media files for IPO on NSE Emerge platform
Summary
- The company plans to dilute 27% of its equity through a fresh issue of shares.
Insomnia Media and Content Services Ltd, led by producer Juhi Mehta, has filed for an initial public offering (IPO) on the National Stock Exchange’s (NSE) Emerge platform, aiming for an enterprise valuation of ₹200 crore. The company plans to dilute 27% of its equity through a fresh issue of shares.
The funds raised will primarily be used to meet the company’s working capital for its current order book.
Also Read: Insomnia Media to invest ₹300 crore in films, shows
NSE Emerge is a specialised platform designed for small and medium-sized enterprises (SMEs) and startups, providing them access to capital by allowing them to list on a recognised exchange. Several media companies have already used this platform to raise funds, including Bodhi Tree Multimedia, which raised capital in 2020 to support its growth in content production across television (TV) and OTT platforms. Other media players like Baweja Studios and Graphisads Ltd have also listed on NSE Emerge, showcasing its growing popularity among media firms.
GYR Capital Advisors will be the merchant banker for the IPO.
Insomnia Media specialises in intellectual property rights (IPR) creation and development, production services, and music and audio services.
In August, Mint first reported the company’s plans to invest up to ₹300 crore in a slate of 10 films and two web series, all in various stages of development. The projects are expected to be completed and released over the next 18 months.
Also Read: Gen Z spending power set to hit $2 tn by 2035: Snap-BCG report
Insomnia Media has announced collaborations with prominent directors such as Raaj Shandilya (Dream Girl), Suparn S. Verma (Rana Naidu, The Family Man Season 2), Remo D'Souza (A.B.C.D.), Pavan Kirpalani (Ragini MMS, Phobia), and Jayprad Desai (Kaun Pravin Tambe, Mukhbir). Other notable partnerships include working with producer Sandeep Singh and writers Hussain & Abbas Dalal and Deepak Kingrani.
Content creation
The company has entered distribution and monetisation deals for most of these projects, with individual OTT and studio partnerships to be announced for each. "The core of good content stems from the writers and creators. The rollout of these films and series will position Insomnia among the top players in the content creation ecosystem," the company stated.
Its music division partners with global giant Believe International SARL to produce music videos that are distributed digitally on platforms such as Spotify, Amazon Prime Music, and YouTube.
Also Read: WinZO earmarks $25 million investment in Brazil for expansion
India's film industry experienced a strong recovery in 2023, with 157.4 million people attending cinemas, a 29% rise from the previous year, surpassing pre-pandemic levels by 8%, according to Ormax Media. While box office revenues exceeded ₹12,000 crore for the first time, the frequency of visits lagged behind, indicating that while more people are returning to theatres, they are doing so less frequently than before the pandemic.
